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An incentive is a payment or concession that often arises when a lease is first granted or subsequently assigned during the course of its term. A common example might be where a landlord pays a new tenant a sum of money to take on a new leasehold contract.This sum may be in the form of a capital contribution towards the tenants initial fit out costs. Or it might be in the form of a rent free period or stepped rent until the first rent review date.